'Orphan' cases delay Competition Act changes

Gireesh Chandra Prasad, TNNApr 14, 2005, 12.43am IST

NEW DELHI: The government's bid to script a flawless competition law is now facing a fresh challenge — resolving nearly half of the cases now dealt with by the MRTP Commission which cannot be transferred to the Competition Commission.

As per the Competition Act, cases of unfair trade practices accounting for roughly half of the 1,100 cases under the Monopolies and Restrictive Trade Practices Commission (MRTPC) cannot be transferred to the Competition Commission of India (CCI). Only cases of abuse of monopoly and restrictive trade practices could be transferred.

It is learned that the company affairs minister Prem Chand Gupta has suggested further modification to the Competition Act amendment bill to tackle this issue. The ministry is thinking whether MRTPC should be retained to take care of such cases till they are resolved or they should be referred to civil courts or consumer courts. The bill is likely only in the monsoon session.

Other administrative issues like appointments to the commission and the judicial body are also to be sorted out.

The ministry has addressed the issue of alleged stepping into judiciary's domain by making the provisions relating to the commission more administrative than adjudicatory. As per the draft bill, the commission, headed by an expert, would only 'express its views in a report rather than adjudicate on disputes and issue an order.' Central government agencies will be employed to enforce these opinions.

If the concerned parties refuse to comply, the commission will move the appellate judicial body headed by a retired Supreme Court judge. The aggrieved party could also seek redressal from the judicial body. While disposing of a public interest petition in January, alleging that a bureaucratic commission adjudicating on competition related matters would be an infringement on the judiciary's turf, the SC had asked the government to make appropriate amendments to the act.